Sensex rises 3% since last budget

Mumbai: It has been seven volatile months for Dalal Street investors since the last time Finance Minister Nirmala Sitharaman on July 5, 2019, with the sensex up to 1,201 points or 3% at the close of Friday at 40,732, while some of the other indexes have lost ground.

Riding the profits on blue chips like Bharti Airtel (up to 36%), Asian paintings (32%), ICICI Bank (20.5%), HUL (13.6%) and Reliance Industries (12%), the wealth of investors also increased little about Rs 5 lakh crore with the capitalization of BSE now almost at Rs 156 lakh crore.

The gains in the last seven months since the Budget were mainly due to the purchase of mutual funds, which together bought shares worth Rs 45,300 million. However, foreign funds, for the most part, were silenced with a net entry of Rs 1,632 crore. One of the main triggers of the recovery since the last Budget was the decision of the government of September 20 to drastically reduce corporate taxes that added a little more than 1,900 points, or 5% to the index in a single session.

Outside the index, insurance and company shares recorded stellar gains with HDFC MF above 60%, ICICI Life for 28% and HDFC Life for 26%. Stocks of pharmaceutical products and related sectors also showed good profits, BSE data showed.

Among business groups, Adani Group investors saw their total wealth increase by 19% or about Rs 33.5 billion to almost Rs 2.1 million. The shareholders of the HDFC group also saw their total wealth increase by almost 6% or almost Rs 70,000 crore to Rs 12.8 lakh crore. This professionally managed financial services group remains the most valued business house in India.